Fiserv 's stock plummeted 44% Wednesday, closing out its worst day ever after the fintech company cut its earnings outlook and shook up some of its leadership team.
"Our current performance is not where we want it to be nor where our stakeholders expect it to be," wrote CEO Mike Lyons in a release.
For the full year, Fiserv now expects adjusted earnings of $8.50 to $8.60 a share for the year, down from a previous forecast of $10.15 and $10.30. Revenues are expected to grow 3.5% to 4%, versus a prior estimate of 10%.
During an earnings call Wednesday, Lyons said Argentina's deteriorating economic environment contributed to slowing growth and margin disappointment. Last year, the South American country contributed 10 percentage points to its 16% organic growth rate, he said.
Fiserv's original growth estimate "assumed that to compensate for the slowdown, our non-Argentinian businesses would grow significantly faster than their historical mid-single-digit range," he said.
Adjusted earnings came in at $2.04 per share, falling short of the LSEG estimate of $2.64. Revenues rose about 1% from a year ago to $4.92 billion, missing the $5.36 billion forecast. Net income grew to $792 million from $564 million in the year-ago period.
Along with the results, Fiserv announced a slew of executive and board changes.